Rate of return on non-callable bonds is $890 and value of issuer option is $670 then return on callable bond is
A. 1.33%
B. $1,560
C. $220
D. $1.33
Answer: Option B
Solution (By Examveda Team)
Return on callable bond = Rate of return on non-callable bonds + Value of issuer option= $890 + $670 = $1,560
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